US Credit Rating Cut again - Obama's incompetency cited

[TheGreatGatsby]

Thanks Obama.

US Credit Rating Cut by Egan-Jones ... Again - US Business News - CNBC

Ratings firm Egan-Jones cut its credit rating on the U.S. government to "AA-" from "AA," citing its opinion that quantitative easing from the Federal Reserve would hurt the U.S. economy and the country's credit quality.

The Fed on Thursday said it would pump $40 billion into the U.S. economy each month until it saw a sustained upturn in the weak jobs market. (Read more: Fed's 'QE Infinity' — Four Things That Could Go Wrong)

In its downgrade, the firm said that issuing more currency and depressing interest rates through purchasing mortgage-backed securities does little to raise the U.S.'s real gross domestic product, but reduces the value of the dollar. ......

In turn, this increases the cost of commodities, which will pressure the profitability of businesses and increase the costs of consumers thereby reducing consumer purchasing power, the firm said.

In April, Egan-Jones cuts the U.S. credit rating to "AA" from "AA+" with a negative watch, citing a lack of progress in cutting the mounting federal debt

 

[Intense]

Some things are inevitable, unless we change direction.

 

[FA_Q2]

Perhaps now we can actually address the problems and halt the cries of ‘it’s all the pubs fault’ that we have heard around the rest of this board. The problems are real and NO ONE is actually trying to address the problem.

That includes the right BTW.


The super committee was a grate outline of this. We are operating around 30 percent over budget and we charge 12 people to get to a solution that would cut a measly 3 percent of the budget. What did we get? NOTHING. That’s how fail this government has become. We can’t get a tenth of what we need.

 

[Truthmatters]

do you have a link to the actual report?

 

[TheGreatGatsby]

Obama has been more interested in using the treasury as his own personal political checking account. History shows that already. When has any other president got our AAA rating lowered?

 

[Mad Scientist]

"Turbo Tax" Timothy Geithner April 2011: “Is there a risk that the United States could lose its AAA credit rating? Yes or no?” - Tim Geithner: “No risk of that.”
Geithner April 2012: “If we don't deal with these debt problems we are going to be Greece in two years” - Tim Geithner: “No risk of that.”

I don't blame Obama at all for this, but he can't do anything about it (even if he WANTED to) because those Special Banking Interests Own Him.

Until the Bankers are booted from our Political and Monetary System, this problem will continue to get worse no matter who is President.

 

[TheGreatGatsby]

"Turbo Tax" Timothy Geithner April 2011: “Is there a risk that the United States could lose its AAA credit rating? Yes or no?” - Tim Geithner: “No risk of that.”
Geithner April 2012: “If we don't deal with these debt problems we are going to be Greece in two years” - Tim Geithner: “No risk of that.”

I don't blame Obama at all for this, but he can't do anything about it (even if he WANTED to) because those Special Banking Interests Own Him.

Until the Bankers are booted from our Political and Monetary System, this problem will continue to get worse no matter who is President.

That's a cop-out. He can do what he wants. And you are ignoring his waste. Utter waste. As far as banking goes; I doubt Obama knows the first thing about fixing it. And since his ego won't allow him to not be the smartest guy in the room; it won't happen.

 

[oldfart]

US Credit Rating Cut by Egan-Jones ... Again - US Business News - CNBC

Ratings firm Egan-Jones cut its credit rating on the U.S. government to "AA-" from "AA," citing its opinion that quantitative easing from the Federal Reserve would hurt the U.S. economy and the country's credit quality.

Two epic fails:

1. The Egan - Jones statement refered to an action of the Federal Reserve, not to Obama.

2. Egan-Jones is not a major ratings agency and may not be a ratings agency much longer.

Egan-Jones Ratings Co. and Sean Egan Charged with Making Material Misrepresentations to SEC
FOR IMMEDIATE RELEASE
2012-75

Washington, D.C., April 24, 2012 — The Securities and Exchange Commission today announced charges against Egan-Jones Ratings Company (EJR) and its owner and president Sean Egan for material misrepresentations and omissions in the company’s July 2008 application to register as a Nationally Recognized Statistical Rating Organization (NRSRO) for issuers of asset-backed securities (ABS) and government securities. EJR and Egan also are charged with material misrepresentations in other submissions furnished to the SEC and violations of record-keeping and conflict-of-interest provisions governing NRSROs.


--------------------------------------------------------------------------------

Additional Materials
SEC Order

--------------------------------------------------------------------------------

The Commission issued an order instituting proceedings in which the SEC’s Division of Enforcement alleges that EJR — a credit rating agency based in Haverford, Pa. — submitted an application to register as an NRSRO for issuers of asset-backed and government securities in July 2008. EJR had previously registered with the SEC in 2007 as an NRSRO for financial institutions, insurance companies, and corporate issuers.

The SEC’s Division of Enforcement alleges that in its 2008 application, EJR falsely stated that as of the date of the application it had 150 outstanding ABS issuer ratings and 50 outstanding government issuer ratings. EJR further falsely stated in its 2008 application that it had been issuing credit ratings in the ABS and government categories as a credit rating agency on a continuous basis since 1995. In fact, at the time of its July 2008 application, EJR had not issued — that is, made available on the Internet or through another readily accessible means — any ABS or government issuer ratings, and therefore did not meet the requirements for registration as an NRSRO in these categories. EJR continued to make material misrepresentations regarding its experience rating asset-backed and government securities in subsequent annual certifications furnished to the SEC.

The SEC’s Division of Enforcement also alleges that EJR made other misstatements and omissions in submissions to the SEC by providing inaccurate certifications from clients, failing to disclose that two employees had signed a code of ethics different than the one EJR disclosed, and inaccurately stating that EJR did not know if subscribers were long or short a particular security.

The SEC’s Division of Enforcement further alleges that EJR violated other provisions of Commission rules governing NRSROs. EJR failed to enforce its policies to address conflicts of interest arising from employee ownership of securities, and allowed two analysts to participate in determining credit ratings for issuers whose securities they owned. EJR also failed to make and retain certain required records, including a detailed record of its procedures and methodologies to determine credit ratings and e-mails regarding its determination of credit ratings.

The SEC’s Division of Enforcement alleges that Egan provided inaccurate information that was included in EJR’s applications and annual certifications. He signed the submissions and certified that the information provided in them was “accurate in all significant respects,” when he knew that it was not. Egan also failed to ensure EJR’s compliance with the recordkeeping requirements and conflict-of-interest provisions.

The SEC’s Division of Enforcement alleges that, by the conduct described above, EJR willfully violated Exchange Act Sections 15E(a)(1), 15E(b)(2), 15E(h)(1) and 17(a), and Rules 17g-1(a), 17g-1(b), 17g-1(f), 17g-1(a)(2), 17g-2(a)(6), 17g-2(b)(2), 17g-2(b)(7), and 17g-5(c)(2). The Division of Enforcement further alleges that by the conduct described above, Egan willfully made, or caused EJR to make, material misstatements in its Form NRSRO, and caused or willfully aided, abetted, counseled, commanded, induced or procured EJR’s violations of Sections 15E and 17(a) of the Exchange Act and Rules 17g-1, 17g-2, and 17g-5.

The SEC’s investigation was conducted by Stacy Bogert, Pamela Nolan, Alec Koch, and Yuri Zelinsky. The SEC’s litigation will be led by James Kidney.

# # #



Egan-Jones Ratings Co. and Sean Egan Charged with Making Material Misrepresentations to SEC; 2012-75; April 24, 2012

I suppose that since you are the original poster you will claim you have a right to declare me "off topic" again for noticing that your source is not reputable.

 

[spectrumc01]

"Turbo Tax" Timothy Geithner April 2011: “Is there a risk that the United States could lose its AAA credit rating? Yes or no?” - Tim Geithner: “No risk of that.”
Geithner April 2012: “If we don't deal with these debt problems we are going to be Greece in two years” - Tim Geithner: “No risk of that.”

I don't blame Obama at all for this, but he can't do anything about it (even if he WANTED to) because those Special Banking Interests Own Him.

Until the Bankers are booted from our Political and Monetary System, this problem will continue to get worse no matter who is President.

That's a cop-out. He can do what he wants. And you are ignoring his waste. Utter waste. As far as banking goes; I doubt Obama knows the first thing about fixing it. And since his ego won't allow him to not be the smartest guy in the room; it won't happen.

do you advocate him going around congress, with a signing statement?

 

[Dont Taz Me Bro]

Thanks Obama.

US Credit Rating Cut by Egan-Jones ... Again - US Business News - CNBC

Ratings firm Egan-Jones cut its credit rating on the U.S. government to "AA-" from "AA," citing its opinion that quantitative easing from the Federal Reserve would hurt the U.S. economy and the country's credit quality.

The Fed on Thursday said it would pump $40 billion into the U.S. economy each month until it saw a sustained upturn in the weak jobs market. (Read more: Fed's 'QE Infinity' — Four Things That Could Go Wrong)

In its downgrade, the firm said that issuing more currency and depressing interest rates through purchasing mortgage-backed securities does little to raise the U.S.'s real gross domestic product, but reduces the value of the dollar. ......

In turn, this increases the cost of commodities, which will pressure the profitability of businesses and increase the costs of consumers thereby reducing consumer purchasing power, the firm said.

In April, Egan-Jones cuts the U.S. credit rating to "AA" from "AA+" with a negative watch, citing a lack of progress in cutting the mounting federal debt

Thank you for creating yet another thread on this, because the first two weren't enough